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| 4G smartphone, automobile onboard and television used backlight products drove a satisfactory growth in profit |
HONG KONG, Mar 27, 2015 - (ACN Newswire) - As one of the Chinese superior LED backlight and LED lighting products manufacturers and services providers, Wai Chi Holdings Company Limited ("Wai Chi" or the "Group", Stock Code: 1305) is pleased to announce its audited consolidated results of the Group for the year ended 31 December 2014 (the "reviewing year"). In the reviewing year, thanks to the exponential growth in the demand for smartphone backlight products under the pull of 4G smartphone as well as the enhancement in technology and productivity of automobile onboard and television backlight products, the revenue of the Group recorded a significant growth of 30.4% to approximately HK$1,165,579,000 (2013: approximately HK$894,033,000); the gross profit increased by 22.4% from approximately HK$225,327,000 in 2013 to approximately HK$275,843,000 in 2014. Net profit for the reviewing year, after deduction of listing fees of approximately HK$16,927,000, was approximately HK$61,193,000, increased by 10.9% as compared to approximately HK$55,190,000 in 2013.
Business Review
The major businesses of the Group include LED backlight and LED lighting. During the reviewing year, revenue derived from LED backlight product related to smartphones, auto mobile on-board displays, television displays and equipment displays were approximately HK$560,833,000, HK$149,412,000, HK$159,596,000, and HK$201,105,000, respectively; while for the LED lighting business, revenues from commercial lighting and public lighting were approximately HK$55,776,000 and approximately HK$38,857,000 respectively.
The Chairman of the Group, Mr. Yiu Chi To said, "During the reviewing year, automobile on-board and television LED backlights are our key development areas. Given the higher penetration rate of multi-media and Complementary Metal Oxide Semiconductor ("CMOS") in automobiles, traditional meter displays were upgraded to LED displays stimulating the demand for automobile-related backlight products. Further, as the production rate of television increased within China itself, television LED backlight products had directly benefited from the domestic demand growth, together with the continuous update and upgrade of the LED backlight technology, it is expected that the growth for both automobile on-board and television backlight products will be maintained at a steady level in the future. The Group will, in its production, on one hand, lower the proportion of smartphone LED backlight, and on the other hand increase that of the automobile on-board and television LED backlight in order to fine-tune the product mix for better operating results."
As the Group's major business venture, LED lighting products and services will be a beneficiary of the PRC government's pursuit in achieving greater energy savings and environmental benefits. The PRC government has launched a series of supporting policies in promoting wide application of LED lighting products, which brings hopes for the industry. As a well-established LED lighting products manufacturer, the Group's environmental-friendly and quality LED lighting products are recognised and being recommended by the Guangzhou government authorities in the "Guangdong Province Green Lighting Model City Catalogue of Recommended Products for Procurement".
By the end of 2014, the Group has changed the lighting devices in over 150 supermarkets and is striving to increase its market share in changing lighting devices in supermarkets. LED lighting customers are always looking for solutions with lower costs. Under the theme of environmental protection and energy saving, public lighting optimisation and the PRC government's promotion to use more LED lighting devices will be the two major industry growth factors. By leveraging on the Group's extensive experience in governmental and sizable supermarket projects, it is believed that the Group will continue to benefit from the growing LED lighting market.
uture Prospect
Looking forward, Mr. Yiu further said, "The Group plans to actively fine-tune its product mix, adjust its production capacity and sales strategies in order to raise production capacity for automobile on-board displays and television backlight parts to meet ever-changing market demands. In terms of productions, the Group is looking for suitable manufacturers of LED parts, wishing to form strategic partnership or outsourcing production lines to further improve financial flexibility and reduce the reliance on workers.
In terms of LED lighting, we aim to seek strategic partnership opportunities to expand product mix and increase product penetration rate by partnering with experienced and trustworthy customers which specialized in specific LED lighting energy management services including supermarket lighting and hospital lighting for development projects. The Group also intends to expand its business outside China, especially targeting those emerging markets with high electricity costs by working with local contractors to bid for government street lighting projects. The Group also plans to establish sales teams, marketing networks, operation centres or maintenance centres in countries with high penetration rate of LED lighting products, such as Japan and South Korea in order to strengthen our Asian and global business network."
About Wai Chi Holdings Company Limited
Wai Chi, listed in the Main Board of the Hong Kong Stock Exchange in November 2014, is one of the Chinese superior LED backlight and LED lightings products manufacturers and service providers in China with over three decades of industry expertise and experience and is renowned of its strong and advanced R&D capability in the market. The Group currently owns comprehensively equipped production facilities in Shenzhen, Huizhou and Yichang in the PRC that capable of handling the requisite production procedures (including product design, mold production, mass production, quality control and maintenance) for LED backlight and LED lighting products. The four major categories of LED backlight business include smartphones, automobile on-board displays, television displays and other industrial equipment displays. LED lighting business mainly includes commercial lighting and public lighting. The Group has adopted strict quality control system in ensuring LED product quality. The Group has been awarded various certifications, including ISO 9001:2008 and ISO 14001:2004 for our quality and environmental management systems.
Topic: Press release summary
Source: Wai Chi Holdings Company Limited
Sectors: Daily Finance, Daily News
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